African Startups Collectively Secured $77 million in Funding in January 2024, Nigeria Receives $5 Million
In the first month of year 2024, startups across Africa secured over $77 million in funding, with Nigeria receiving $5 million in funding. This was revealed by the ‘Africa: The Big Deal’ report.
The total sum generated was amassed through 38 deals surpassing the $100,000 mark, marking January 2024 as the second-lowest fundraising month since early 2021, with only March 2023 recording lower figures. Notably, three significant 8-digit deals accounted for 38% of the total funds raised on the continent during the month.
These transformative deals included Yodawy in healthtech, Egypt ($10 million), Apollo Agriculture in agritech, Kenya ($10 million), and Hatch Africa in pan-African agritech ($9.5 million). Equity funding constituted 74% of the total funding, while the remaining 26% was raised through debt financing, totaling $20 million across five transactions, including Hatch Africa’s and $7 million to Sun King. Notably, the report highlighted only one public exit: the acquisition of Egyptian edtech Orcas by Baim, although the amount remains undisclosed.
The report underscored three sectors that garnered the most funding which include; Agriculture & Food ($24 million through five deals, including Apollo Agriculture and Hatch Africa), Healthcare ($14 million through four deals, including Yodawy), and Fintech ($13 million). Despite Fintech leading in the number of deals (10), Agriculture & Food emerged as the top sector in terms of total funding.
Also, Climate Tech-related deals, spanning various sectors, contributed to 21% of the total raised ($16 million), representing a lower share compared to the overall funding in 2023.
